The proposed hospital will have an estimated bed capacity of approximately 430 beds. The company would install 300 beds by FY27 and the remaining 130 beds by FY29.
The aforementioned lease agreement is with BREN Corporation and 5 other landowners. The agreement is for a period of 30 years from lease commencement date. It has a lock-in period of 30 years for the lessor and 12 years for the lessee.
The company shall be obliged to pay rent based on per square feet of chargeable area plus applicable taxes. It would also be required to make an interest free refundable security deposit of Rs 58.65 crore.
The project would entail an investment of Rs 480 crore and would be funded using bank loans and internal accruals.
Offering the investment rationale, the company stated: "Establishing a comprehensive multi-specialty hospital in South-East Bangalore offers a strategic opportunity to address the growing healthcare needs of a rapidly expanding population, driven by urbanization and an increasing middle class with greater disposable income.
Sarjapur is projected to become the next IT hub in Bangalore making it an ideal location for specialized multi-specialty hospital with comprehensive cancer care.
This project is well-positioned to serve an essential market need while capitalizing on the location’s proximity to already established IT corridors.”
Aster DM Healthcare is primarily involved in the operations of healthcare facilities, retail pharmacies, and providing consultancy in areas relating to healthcare.
The company's consolidated net profit had declined 68.31% to Rs 56.79 crore despite a 9.97% increase in revenue to Rs 1,049.81 crore in Q3 FY25 as compared with Q3 FY24.
The scrip has fallen 1.03% to currently trade at Rs 514.05 on the BSE.